1 TO: City Council
FROM: Ryan Smoot, City Manager
PREPARED BY: Carla Dillon, P.E., Public Works Director
MEETING DATE: November 21, 2023
SUBJECT: Blue Ridge Mechanical Inc. Change Orders for Appian Way Emergency Generator Project
RECOMMENDATION
1) Approve contract Change Order No. 2 for Blue Ridge Mechanical Inc. for additional work required for the installation of the Emergency Generator at the Appian Pump Station in the amount of $2,096.00;
2) Approve contract Change Order No. 3 for Blue Ridge Mechanical Inc. for additional materials for the installation of the Emergency Generator at the Appian Pump Station in the amount of $1,292.00; and
3) Authorize the Director of Public Works to approve Change Order No. 2; and 4) Authorize the Director of Public Works to approve Change Order No. 3.
BACKGROUND
The installation of the new Electric Generator for use at the Appian Pump Station is nearly complete. During construction, it was necessary to hook-up a temporary connection from a rental generator to the Pump Station to allow the stand-by generator to function.
Additionally, it was necessary to electrically test the generator and provide staff training.
Staff received Change Order No. 1 (CO #1) request from Blue Ridge Mechanical Inc. (Blue Ridge) in the amount of $6,821.00 for the electrical connection, testing, and training.
CO #1 was approved and is within the contract contingency amount.
One of the long lead-time items under the Appian Way Emergency Generator Project was procurement of the permanent load bank, which is needed for testing. During the construction project, staff learned that a load bank may be rented during the annualrequired testing, and the City may forego purchase. Canceling the purchase of the load bank would provide approximately $60,000 purchase cost savings. Change Order No. 2 (CO #2) is for mobilization of a load bank and testing the new generator in the amount of Item No. 7k
CITY OF LOMITA
CITY COUNCIL REPORT
2 $2,096.00. The annual expense for a rental load bank is expected to be less than $500, when provided by a generator maintenance company as part of annual servicing.
Change Order No.3 (CO #3) allows for the purchase of the appropriate cable to connect the new generator to the building. A cable was not originally specified in the project documents, and the City has retained the cable provided from the rental generator, which has a monthly fee for rental. Staff received two quotes for the cable, one from Blue Ridge and the other from United Rentals. Blue Ridge was the lowest in the amount of $1,292.00.
Connecting the permanent/owned generator allowed the city to return the rental generator early providing an expected savings of at least $9,000.
Due to the expedited installation of the permanent/owned generator and option to utilize a rental load bank going forward, the City will recognize significant cost savings. Staff recommends approval of these change orders in order to complete the project ahead of schedule and under budget.
FISCAL IMPACT
Although the contract expenses will increase for Blue Ridge, the overall expenses are expected to be less than the Council approved overall project budget. City Council originally approved an agreement with Blue Ridge for $58,337.00. With these Change Orders, the authorized expense with Blue Ridge will be $60,937.00.
OPTIONS
1. Approve staff’s recommendation.
2. Provide alternative direction.
ATTACHMENTS
None
Reviewed by: Approved by:
_____________________
Gary Y. Sugano Ryan Smoot
Assistant City Manager City Manager
Prepared by:
_______________________
Carla Dillon, P.E.
Public Works Director